Key Takeaways

• Snowflake shares jumped after the company reported better-than-expected earnings on strong AI demand.

• The AI data cloud company also raised its full-year outlook.

Snowflake stock is surging on signs that enterprise AI demand is driving big gains for its business.

Shares of Snowflake (SNOW) were up more than 20% in premarket trading Thursday, a day after the AI data cloud company posted quarterly results that topped analysts' estimates and raised its outlook.

The company reported adjusted earnings per share of $0.62 for its fiscal 2027 second quarter, on a 35% year-over-year rise in revenue to $1.55 billion. Those numbers were well above the adjusted EPS of $0.45 on revenue of $1.48 billion that analysts surveyed by Visible Alpha expected.

CFO Brian Robins said in a release that Snowflake saw a "meaningful step-up in AI revenue." The company said it netted 692 new clients in the quarter, including 14 Forbes Global 2000 businesses.

"AI continues to compound our advantages, creating a flywheel effect across the business," CEO Sridhar Ramaswamy said.

Snowflake projected current-quarter product revenue of between $1.588 billion and $1.593 billion, which would represent up to 38% growth. It lifted its full-year product revenue forecast to $6.07 billion from $5.84 billion previously.

Snowflake shares were up nearly 40% for the year through Wednesday's close.

CORRECTION AND UPDATE: This article has been updated to reflect more recent prices and correct an earlier version that incorrectly stated the stock was on track to hit a record high.

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